Instructure Takes A Big Leap With $30 Million Worth Of Venture Capital Funds
After making education pervasive and facilitating degree completion for many students, online learning has another success story to its credit – tech-driven learning management systems or LMS.
Instructure, a company that sells course-management software, recently announced that it will be getting $30 million in venture capital funds. Prior to Instructure, Blackboard had majorly dominated the LMS market, enjoying a 70% market share initially which came down to 45% by 2012.
The critical point is that for LMS manufacturing companies, it is essential to stay abreast of technology and keep innovating and inventing to be at the top of their game.
“Most of the other vendors—their original product architectures came out 10 years ago or more. Instructure has been part of a new wave of LMS,” Phil Hill, an educational-technology consultant said in an article published in The Chronicle of Higher Education, an online news resource for college faculty, administrators and students.
The LMS platform that this company is launching is called Canvas, and it is being adopted by prominent colleges such as Auburn University, Brown University and the University of Washington. The company has an awesome success story to itself, expanding from just 20 employees 2 years ago to over 220 employees today.
The increased size, however, doesn’t mean that Instructure is up for grabs by LMS giants like Blackboard. Josh Coates, Chief Executive Officer (CEO) of Instructure claimed that the company would remain independent and may even go public in a few years time.
So who were the generous venture capitalists who believed in the potential of this company? It was Bessemer Venture Partners, with participation by existing investors, including EPIC Ventures and Tomorrow Venture.
For those wondering what it is that sets apart one LMS from another, it’s the look, feel, positioning and novelty of each online platform. And colleges today do consider this aspect when choosing an online learning portal for their distance education programs.